The Reserve Bank once once more hit the stomach of the common man who was struggling with the price rise. The repo rate was hiked for the fifth time, setting the stage for higher interest rates on home, auto and personal loans. RBI has said that the action is due to high inflation. Governor Shaktikanta Das said. At the same time, banks may increase interest on fixed deposits.
Reduce liquidity in the market to contain inflation. It is with this objective in mind that the RBI Monetary Policy Committee has decided to increase rates by 35 basis points for the fifth time in a row. With this, the repo rate became 6.25 percent. 2.25 percent is continuously increased. Inflation not less than six percent, international financial crisis and high value of dollar contributed to the decision. The growth estimate for the current fiscal has been revised down to 6.8 percent from 7 percent.
RBI increases Repo rate by 35 basis point
